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Old 12-05-2012, 07:22 PM   #1
Elandyll Elandyll is offline
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http://finance.yahoo.com/news/disney...035400659.html

The effects of the deal will be felt starting next year, with old classics arriving on Netflix, and direct to video films as well. The big new releases will start coming in 2016/2017 (hence SW ep 8 and 9 would debut there about 8 months after theater release).

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Netflix Inc. (NFLX) signaled that it is ready to rumble with traditional pay-TV channels such as HBO and Showtime.
The Internet video company outbid Liberty Media Corp.'s (LINTA) Starz for the exclusive right to show Walt Disney Co. (DIS) movies about eight months after they hit theaters, establishing Netflix as a legitimate competitor to premium cable-TV channels by offering additional popular content for its Internet video streaming service.
Starting in 2016, Netflix customers will be able to see recently released Disney movies in their Watch Instantly queue. Currently those movies are available on Liberty Media's Starz, a cable channel that competes with HBO, Showtime and Epix.
Netflix and Disney declined to discuss financial terms of the three-year deal announced Tuesday, but it appears to be valued at around $300 million a year to Disney.
Starz's deal to show Disney's movies, which dates to 1993, is due to expire in 2015. During renewal negotiations, Disney sought terms that could have resulted in an increase of about $100 million annually, according to a person familiar with the negotiations.
For Disney, the income from the agreement will help offset some of the large sums it has paid in recent years for properties such as Lucasfilm Ltd., home to the "Star Wars" franchise. The deal includes Disney live-action and animated films, as well as those from Pixar Animation Studios and Marvel Studios.
Netflix shares jumped 14%, or $10.65, in Tuesday trading to $86.65, indicating that most investors aren't worried about its aggressive investments in high-profile movies and TV shows for its online streaming service.
Netflix executives have regularly said that the company doesn't see any particular content as must-have, nor is it willing to spend more than it thinks is reasonable for streaming rights.

Netflix spends more than half its annual revenue on content, a strategy that Daniel Ernst, an analyst at Hudson Square Research, said is a sustainable business model considering Netflix's base of more than 25 million subscribers to its streaming service in the U.S.
The spending, which he said might have fallen in the range of about $1.7 billion last year, helps to attract more subscribers, which in turn allows Netflix to spend more money on content. "It's been a virtuous cycle," he said.
Michael Pachter, an analyst at Wedbush Securities, was less enthusiastic. He said that when negotiations broke down between Netflix and Starz over a now-expired content-supply deal between the two companies, the price was similar to what Netflix now appears to be paying Disney.
"Now they're buying about half the content for the same price and yet they say it's a phenomenal deal," he said. "They're paying a lot."
Mr. Pachter said this likely guarantees Netflix will be profitless for another several years once the deal kicks in.
Netflix Chief Content Officer Ted Sarandos characterized the deal as "a bold leap forward for Internet television."
The expiration date of the current Starz deal means that that channel will be able to show two of Disney's most anticipated films of the next few years: "The Avengers 2" and the seventh Star Wars movie, both due in 2015. That expiration date plus the pay-TV window time frame means that a Disney movie released late in 2015 will be available on Starz starting in 2016 and lasting into 2017.
Indeed, on Tuesday, Starz noted that it will "continue to be the exclusive home of all Disney movies, including the Lucas Film, Marvel and Pixar releases, and their accompanying digital streaming rights, into 2017. Our decision not to extend the agreement for Disney output past that time allows us the opportunity to implement our plan to dramatically ramp up our investment in exclusive, premium-quality original series which will best meet the needs of our distributors and subscribers."
Starz, run by the former HBO chief executive Chris Albrecht, has lately put more emphasis on original programming, including "Boss," a drama starring Kelsey Grammer, and the gladiator series "Spartacus."
Subscription services such as Amazon.com Inc.'s (AMZN) Amazon Prime and HBO won't be able to show Disney film's during Netflix's new window, which begins seven to nine months after theatrical release.
But the movies will be available on video-on-demand services, pay-per-view television and digital download sites such as Apple Inc.'s (AAPL) iTunes Store, according to a person familiar with the deal.
Disney's older movies, including "Dumbo," "Pocahontas" and "Alice in Wonderland," are set to become available in coming months. Disney's direct-to-video releases, such as the coming "Cars" spinoff, "Planes," will show up on Netflix starting in 2013.
The Netflix deal is good news for major film studios, as existing premium cable channels in recent years have questioned the value of movies and emphasized homegrown series such as HBO's "Boardwalk Empire."
Disney is the biggest studio yet to make such an arrangement with Netflix. Netflix has struck deals with smaller entertainment companies, including Dreamworks Animation SKG Inc., Weinstein Co. and Relativity Media LLC.
Media executives and analysts have been debating how much premium channels should pay studios for their movies, which have become accessible on a growing number of outlets, from video-on-demand services to the Web.
The dominant pay channel is Time Warner Inc.'s (TWX) HBO, which has deals with three of the six major Hollywood studios, including Warner Bros., Twentieth Century Fox and Comcast Corp.'s (CMCSA) Universal Pictures. HBO just renewed its deal with Fox through 2022. Fox is owned by News Corp. (NWSA), which also owns The Wall Street Journal.
After a licensing squabble several years ago, Showtime also has put more emphasis on original programming, from "Dexter" to "Homeland," which recently swept the Emmys for drama.
Netflix also is developing its own series, like "House of Cards" due to debut early next year, and is licensing a revival of "Arrested Development." With the Disney deal, it will also have exclusive major studio films.
Netflix costs $7.99 a month for unlimited Internet streaming access to its movies and TV shows, about half the retail cost of HBO, which also airs movies and various TV series.
John Jannarone contributed to this article.

Last edited by Elandyll; 12-06-2012 at 01:28 AM.
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Old 12-05-2012, 07:29 PM   #2
fatediesel fatediesel is offline
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Not thrilled about this. Even though I have a large Blu-ray selection I still enjoy to catch parts of movies when they are on the pay cable channels, even movies I already own. Pay cable movie selection had already decreased for me since Paramount, MGM, and Lionsgate created Epix (which my cable company doesn't offer) and the selection will just get worse when this deal takes effect. Starz is going to have to make a deal with another studio to replace the movies they'll lose because they don't have the original programming like HBO and Showtime to keep me as a customer.
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Old 12-05-2012, 08:46 PM   #3
luv2shop luv2shop is offline
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Actually Disney movies have been put on as of today:

Alice in Wonderland
The Aristocats
The Brave Little Toaster Goes to Mars
The Brave Little Toaster to the Rescue
Cars Toons: Mater's Tall Tales
Dumbo
Fox and the Hound
The Great Mouse Detectives
James and the Giant Peach
The Muppet Movie
The Nightmare Before Christmas
Pocahontas
Pocahontas II: Journey to a New World
The Rescuers Down Under
Tarzan & Jane
The Tigger Movie
Tinker Bell
Tinker Bell and the Great Fairy Rescue
Tinker Bell and the Lost Treasure

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Old 12-05-2012, 08:51 PM   #4
Elandyll Elandyll is offline
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Well, that went fast
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Old 12-05-2012, 08:53 PM   #5
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Quote:
Originally Posted by Elandyll View Post
Well, that went fast


You might want to change your thread title.
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Old 12-05-2012, 11:01 PM   #6
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Quote:
Originally Posted by luv2shop View Post


You might want to change your thread title.
Maybe we're getting Starz back in '16?

To avoid confusion, all the above listed titles seem to be up on Instant as I write.
Got most of them on disk, but wouldn't mind looking up a few disposables I wouldn't go through the trouble of physically renting (eg. Aristocats, Pocahontas II, Toasters)

May be another by-product of their folding their classic-streaming site, and letting somebody else handle the mobile-viewer bits for the less in-demand titles.

Last edited by EricJ; 12-05-2012 at 11:07 PM.
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Old 12-05-2012, 11:49 PM   #7
luv2shop luv2shop is offline
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Quote:
Originally Posted by EricJ View Post
To avoid confusion, all the above listed titles seem to be up on Instant as I write.
Yeap the titles that I posted are available on streaming.
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Old 12-06-2012, 01:21 AM   #8
Elandyll Elandyll is offline
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Quote:
Originally Posted by luv2shop View Post


You might want to change your thread title.
Actually the "main" deal concerning new releases indeed starts in 2016, so it is still relevant, but i'll see if I can amend concerning the "old stuff".
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Old 12-06-2012, 02:36 AM   #9
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Quote:
Originally Posted by Elandyll View Post
Actually the "main" deal concerning new releases indeed starts in 2016, so it is still relevant, but i'll see if I can amend concerning the "old stuff".
Starz had access to all the recent 00's new-Disney movies within six months of hitting video, like Secretariat, Pixar, theatrical Ghibli, Princess&Frog and Prince of Persia, and those used to show up on Netflix via StarzPlay.
Looks like Disney's cutting out the middleman and selling their new titles direct.

As for the old catalog (Dumbo, Toaster, Buddies), a title first has to already be in third-party digital form to play Netflix, so--given that almost ALL of Disney's rarities catalog has shown up on Vudu.com at some point, even some of the ex-Club titles--they may use NF as a dumping ground for their bottom catalog as well.
Wouldn't mind getting some True-Life Adventures and Apple Dumpling Gang in the mix.

Last edited by EricJ; 12-06-2012 at 02:42 AM.
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Old 12-06-2012, 02:55 AM   #10
JavaJulien JavaJulien is offline
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Aww sweet, gonna watch some Aristocats tonight.
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Old 12-06-2012, 03:12 AM   #11
The_Donster The_Donster is offline
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Thanks OP and luv2shop. I'd actually caught this on Facebook, but Dumbo was the only one I knew about. Now I've got a few movies to get the man cub watching.
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Old 01-12-2013, 03:14 PM   #12
arcadeforest arcadeforest is offline
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Happy to see this, I know NetFlix can be unpopular with some but I really enjoy having it to supplement my blurays, digital films and internet streaming through my home theater pc. Just in the last year I've watched everything Star Trek from the original series through enterprise, currently watching all the hercules and xena episodes, etc. Looking forward to catching some Disney titles I do not currently own.
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